Aussie Gains Continue
MarketPulse | Oct 29, 2014 11:20AM ET
AUD/USD posted modest gains on Wednesday, as the pair trades just above the 0.89 line. The Australian dollar is enjoying some momentum, having improved over 100 points this week. On the release front, the FOMC concludes its policy meeting, with the Fed expected to wind up its QE program. There are no Australian releases on Wednesday.
In the US, durable goods looked dismal in September. Core Durable Goods Orders dropped 0.2%, its second decline in three months. This was well short of the estimate of 0.5%. Durable Goods Orders followed suit with a decline of -1.3%. This was the indicator’s second straight decline and missed the estimate of 0.4%. Later in the day, the US releases CB Consumer Confidence, with the markets anticipating a strong September reading.
The Federal Reserve will be at center stage on Wednesday, as a two-day meeting wraps up with the release of a policy statement. The Fed is expected to wind up QE, and if policymakers delay this move, the dollar will likely take a hit against its major rivals. The markets will also be looking for hints regarding the timing of a rate hike, which is expected sometime in 2015. Traders should treat this release as a market-mover which could have a significant impact on the currency markets.
- AUD/USD 0.8900 H: 0.8911 L: 0.8854
AUD/USD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 0.8668 | 0.8763 | 0.8820 | 0.8953 | 0.9020 | 0.9119 |
- AUD/USD posted gains late in the Asian session and has posted slight gains in the European and North American sessions. The pair remains rangebound as it trades at the 0.89 line.
- 0.8820 is providing support.
- 0.8953 is a weak resistance line. 0.9020 is next. This line was last breached in mid-September.
- Current range: 0.8820 to 0.8953.
Further levels in both directions:
- Below:0.8220, 0.8763, 0.8668, 0.8550 and 0.8456
- Above: 0.8953, 0.9020, 0.9119 and 0.9217
OANDA’s Open Positions Ratio
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AUD/USD ratio is unchanged on Wednesday. This is not consistent with what we’re seeing from the pair, as the Australian dollar has posted gains. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD continuing to move to higher ground.
AUD/USD Fundamentals
- 14:30 US Crude Oil Inventories. Estimate 3.3M.
- 18:00 US FOMC Statement.
- 18:00 US Federal Funds Rate. Estimate
* Key releases are highlighted in bold
*All release times are GMT
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